Ethena surges 27%, but here’s how ENA could push 38% higher
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
- MATIC traded sideways in the first half of August.
- It recorded massive accumulation but network traction dipped.
Bitcoin’s [BTC] muted price performance in the last few days has dulled the crypto market. Apart from outliers like Shiba Inu [SHIB] and Pepe [PEPE] that temporarily decoupled from BTC, the rest, including Polygon [MATIC], recorded dismal performance.
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In particular, MATIC has been trading sideways between $0.660 – $0.704 since late July, prompting traders to target range extremes for profits. On Sunday, 13 August, a short squeeze was witnessed after MATIC’s sharp move up the mid-range, only to dip a few hours later.
MATIC stuck at the mid-range
Source: MATIC/USDT on TradingView
On Friday, 11 August, MATIC breached the mid-range of $0.682 but didn’t register a further drop. The short squeeze witnessed over the weekend emphasized how risky shorting the asset at the mid-range with muted BTC price movement could get.
But the range-high presented a much solid entry position for the short position if BTC’s weakening persists. The range-high ($0.704) aligned with the H4 bearish order block of $0.698 – $0.704 (red), making a more solid bearish zone.
Although the Relative Strength Index (RSI) was neutral at the time of writing, indicating prices could go in any direction, the Chaikin Money Flow (CMF) edged above the zero mark. It shows capital inflows improved despite the muted buying pressure.
Ergo, if MATIC climbs above the mid-range and graces the range-high, a price reversal could be likely, especially if BTC remains below $29.5k.
If so, shorting at the range-high ($0.698 – $0.704), with a take-profit target at the mid-range ($0.682), could offer modest gains.
MATIC recorded accumulation, but…
Source: Santiment
According to the data intelligence platform, Santiment, MATIC recorded massive accumulation amidst eased sell pressure and network traction. The rising 90-Mean Coin Age (yellow) indicates that the altcoin recorded network-wide accumulation since late July.
How much are 1,10,100 MATICs worth today?
On the other hand, the Supply on Exchanges dipped significantly; denoting eased short-term sell pressure.
However, MATIC’s network traction dipped, as the declining Network Growth (blue) indicated. It means the number of new addresses declined in the last few days, reinforcing the bearish thesis and short idea above.
